HB491 Alabama 2013 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2013

Title

Nursing facilities, supplemental privilege assessment and monthly surcharge extended, expiration under certain conditions, Sec. 40-26B-21 am'd.

Summary

HB491 would extend nursing facility privilege-related taxes (the supplemental privilege assessment and the monthly surcharge) through August 31, 2015, with expiration conditions.

What This Bill Does

Extends the supplemental privilege assessment and monthly surcharge for nursing facilities to Aug. 31, 2015. Keeps the base privilege assessment at $1,899.96 per bed per year and defines the supplemental assessment and monthly surcharge amounts and timing, including changes to the monthly surcharge. It explains how these assessments are treated in Medicaid per diem calculations and sets conditions under which the assessments would stop, such as if Medicaid enters certain third-party managed care contracts, plus a safeguard to reduce rates if total assessment revenues fall below a 6% threshold of facility revenues.

Who It Affects

• Nursing facilities in Alabama: must pay the per-bed privilege assessment, supplemental assessment, and monthly surcharge, with specific rates and timing.
• Alabama Medicaid Agency: administers Medicaid, adjusts per diem rates to include these assessments as allowable costs, and can trigger cessation of assessments under contract conditions.
• Nursing facility residents (through Medicaid): could be affected indirectly through changes in Medicaid per diem funding related to the assessments.

Key Provisions

• Extend the supplemental privilege assessment and the monthly surcharge through August 31, 2015.
• Maintain the base privilege assessment at $1,899.96 per bed per year; define supplemental assessment rates (higher amounts per bed per year) and the monthly surcharge schedule (including an initial $131.25 per bed, later reduced to $43.75).
• Treat the total assessments as allowable costs and include them in Medicaid per diem rate calculations, with corresponding rate adjustments to reflect these costs.
• Cessation of the assessments if the Alabama Medicaid Agency enters into third-party managed care contracts with a commercial managed care entity, with certain exceptions for specific program structures.
• If total revenues from the assessments fall to 6% or less of total nursing facility revenues in a fiscal year, reduce the rates and adjust Medicaid per diem accordingly to reflect actual payments.
• Effective date: the act becomes law immediately after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation